European stock markets fell on Wednesday amid renewed concerns about the broader impact of the latest banking crisis. The first republic Stocks fell 49.4% On Tuesday, after the US-based regional bank revealed deposits shrank 41% to $104.5 billion in the latest quarter, much more than analysts had expected.
Investors are now eyeing earnings reports from major European companies such as Standard Chartered, Deutsche Boerse, MAN Group, Roche and Dassault Systemes. The market will also evaluate a number of European data including Italian GDP, as well as German and French Consumer Confidence data.
Meanwhile, the German GfK Consumer Climate Index rose for the seventh consecutive month to -25.7 heading into May 2023, the highest since April 2022, and compared to market estimates of -27.9. Earnings expectations were the main contributor to the gains (up 13.6 points to -10.7), increasing for the seventh time in a row and continuing to levels reached in February 2022 just before the start of the Ukraine war, driven by more moderate energy prices on the back of various government programs to compensate for higher prices. Energy costs for homes and businesses. The economic outlook also continued its upward trend (up 10.6 points to 14.3), and the buying inclination increased for the third consecutive month (up 3.9 points to -13.1).
Technical review
GER40, D1
The GER40 Index still maintains the upside near the 2022 highs, but opened the week on a slightly bearish side. The daily chart view is showing that a fifth Elliott wave formation is in progress, and traders are starting to look for it to flatten slightly below recent resistance. The RSI is moving away from the overbought level, currently at 58 and the MACD has a speculative sell signal cross in the buy zone. The divergence bias between the two indicators is visible and requires confirmation.
trade above 15,923 It will confirm the continuation of the bullish trend with the possibility of testing 16287 high, while moving below 15703 Support can be tested 15479 Outlook cloud support. Technically, the index is still in an uptrend as the price is moving above its 26-day exponential average.
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Eddie Fangisto
Market Analyst – HF Education Office – Indonesia
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